Ndubuisi Francis
The federal government is committed to providing an enabling environment for all privatised enterprises in the country to perform optimally in order to realise the privatisation objectives.
The Director General of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh, who spoke at the handover of Certificate of Occupancy (C of O) of Ikorodu Bricks and Clay Limited (IB & CL) to the core investor, Continental Project Development & Supplies Ltd. (CPDSL) in Abuja, listed conditions for the hand over.
Based on the execution of the revised Performance Agreement which was submitted by the core investor in May 2021, Okoh said the Bureau will monitor the implementation of the Post Acquisition Plan (PAP) to ensure strict compliance.
He urged the core investor to note the addendum to the Share Sales/Purchase Agreement (SSPA) which prevents it from the sale or disposal of part or the whole shares or land of the company without the prior notice and approval of the Bureau.
The Director General implored CPDSL to revive the company and bring it to profitability in the shortest time and for the benefit of Nigerians.
Responding, the company’s Group Chairman, Prince Albert Awofisayo said the company would abide by the reviewed SSPA to resuscitate the company to generate employment in Nigeria.
He appeal to the federal government to intervene in power supply to the company, adding that the cost of generating power by the organisation is expensive.
Ikorodu Bricks & Clay Company, wholly owned by the Federal Government of Nigeria was privatised through a core investor sale in 2006.
The company was acquired 100 per cent by CPDSL through a competitive bidding process.
Through the post-transaction monitoring exercise, it was discovered that IB&CL stopped operations few years after privatisation due to the core investor’s inability to raise capital to finance the operations.
Thus, the company was listed as one of the non-performing enterprises and in the quest (through the committee set up for non-performing enterprises) to identify the challenges inhibiting performance, CPDSL identified the inability to raise capital to finance operations as part of its challenges.
It, therefore approached the Bureau to secure the Certificate of Occupancy (C of O) for the company to enable it secure financial facility to resuscitate the company.
The BPE consequently approached the Federal Ministry of Works and Housing to secure C of O for the company.
The ministry requested the company to pay for the ground rent for the facilitation of the title document, prompting the BPE to intervene and requested for a waiver to enable the company secure necessary finance to turn around CPDSL to profitability.
Consequently, President Muhammadu Buhari granted a waiver and directed the BPE to ensure that the core investor undertakes to reviving the company after the waiver was granted.
